Shanghai has revised its regulations to encourage multinational enterprises to set up their regional headquarters as the city looks to maintain its edge in the "headquarters economy."

The revision this time, aimed to add fresh impetus to the further development of the headquarters economy, defines a new type of regional headquarters, namely business unit headquarters, to be recognized with criteria on the scale and proportion of operating revenues.

Changes in the revised regulations can also be found focusing on supporting headquarters' development in Shanghai, with targeted measures added to help deal with the difficulties, pain points and blockages faced by headquarters in the city.

As an example, in terms of fund operation and management, the city will facilitate enterprises in cross-border fund pooling, use of foreign exchange earnings from capital projects, as well as cross-border RMB settlement.

On trade facilitation, enterprises are supported to carry out offshore trade, distribution centers, bonded maintenance and other new types of international trade, while priority is given to cultivating key headquarters enterprises to become authorized economic operator (AEO) enterprises.

The city will also encourage enterprises to apply for government scientific research projects, and to enjoy customs clearance facilities by being included in the "white list" of biomedical pilot enterprises and goods.

It also noted measures on streamlining services via online platforms, supporting settlement of talents, facilitating exit and entry and immigration of employees, and helping with intellectual property protection.

The service mechanism for these corporations will be optimized, with communication platforms linking authorities and enterprises.

It is hoped that these measures will provide compelling reasons for multinational corporations to increase their presence in Shanghai, said Zong Ming, vice mayor of the city.

The regulations, of which a provisional version was first launched as early as 2002, have helped lure a number of MNCs to settle in Shanghai.

Over the past 20 years, the city has kept encouraging and supporting MNCs to set up their regional headquarters here, as part of its efforts to make active use of foreign capital and expand opening up.

The total number of recognized regional headquarters of multinational enterprises in Shanghai surged from 16 to 877 in the two decades, making Shanghai the city with the most regional headquarters in China.

The revised regulations were released on Sunday at the 2022 Shanghai City Promotion Convention, a major supporting activity of the 5th China International Import Expo, which kicked off on Saturday.